[Market Focus] Lotte Tour Development Has Over Double Growth Potential Left... Target Price Raised by Securities Firms

Lotte Tour Development is showing strong performance. This is interpreted as a result of securities firms raising their target price for Lotte Tour Development, citing that the company still has more than double its growth potential.

As of 9:39 a.m. on June 16, Lotte Tour Development was trading at 13,890 won, up 3.66% from the previous day.

Na Seungdoo, a researcher at SK Securities, explained, "This can be attributed to several factors: the impact of content such as 'Poksak Sogassuda,' which was released in March this year; the gradual expansion of international flight routes at Jeju International Airport; and the resumption of group cruise operations. The increase in foreign visitors to Jeju is currently having a positive effect on the operation of the Jeju Dream Tower Hotel and Casino. The number of casino visitors and drop amount are steadily rising, and last month, monthly casino sales exceeded 40 billion won for the first time."

Last month alone, the number of foreign visitors to Jeju reached approximately 215,000. This figure represents an increase of about 78% compared to approximately 121,000 in January this year, and a rise of about 15% compared to approximately 187,000 in May last year. This surpasses pre-COVID-19 levels and is comparable to the early 2017 period, when the THAAD-related ban was emerging.

He added, "In particular, since monthly casino sales are exceeding 40 billion won and the business is progressing smoothly, it is fully possible to further remove discount rates. Considering that monthly foreign arrivals to Jeju once reached about 450,000, Lotte Tour Development still has more than double the potential for performance growth. The process of financial structure improvement resulting from better performance is also a factor that enhances investment appeal."